National Bank has several departments that occupy both floors of a two story building. The departmentmental accounting system has a single account. Building Occupancy Cost, in its ledger. The types and amounts of occupancy costs recorded in this account for the current period follow. Depreciation-Building 18,000 Interest-Building Mortgage 27000 Taxes-building and land 9000 gas 3000 Lighting 3000 Maintenance Exp 6000 Total occupancy cost 66,000 The building has 4000 square feet on each floor. In prior periods, the accounting manager merely divided the 66,000 occupancy cost by 8000 square feet to find an average cost of 8.25 per square foot and then charged each department a building occupancy cost equal to this rate times the number of square feet that it occupied. Diane Linder manages a first-floor department that occupies 1,000 square feet, and Juan Chiro manages a second floor department that occupies 1,800 square feet of floor space. In discussing the departmental reports, the second floor manager questions whether using the same rate per square foot for all departments makes sense because the first floor space is more valuable. This manager also references a recent real estate study of average local rental cost for similar space that shows first floor space worth 30.00 per square foot and second floor space worth 20.00 per square foot (excluding costs for heating, lighting, and maintenance)

Allocate occupancy costs to the Linder and Chiro departments using the current allocation method.

Linder's Dept-square footage-rate-Total

Chiro's Dept. Square footage rate Total